New Day Films offers a distribution alternative to both traditional distributors and self-distribution. Because we operate as a cooperative, with members doing most of New Day's work, we have low overhead, which means that most of the revenue generated by sales goes back into the members' pockets.

There is no free lunch, however. For you to make this important business decision-- about whether or not to join New Day--it is important to have a realistic understanding of what to expect financially. The financial foundation of New Day Films rests on two complementary concepts:

1.You reap what you sow
2. The share ladder.


1) You Reap What You Sow

Your returns will come primarily from your own efforts. All the hours put into producing your high-quality film will not, by itself, generate sales. Only a well-thought-out distribution plan and effort will result in sales and rentals.

First, you must identify your market for your film. This market sometimes takes time and effort to identify correctly. New Day members, many with long experience in distribution, can help you identify this market.

Second, do a direct mailing of your brochure once or twice a year to your target market. This DIRECT MAILING of YOUR FILM is generally your single biggest generator of sales and rentals (in addition-- but not as a substitute-- members are encouraged to combine films for group New Day mailings, a strategy that can spread the mailing costs among two or more films).

To this, add marketing at conferences, festivals, listserves, the Internet, possible TV broadcasts, and other creative promotion efforts.

The New Day catalog puts your film into a highly respected collection, which is important. But the catalog only supplements your more direct efforts. Less than 10% of New Day sales are actually generated by the catalog, so don't rely on the catalog for sales.

All of the revenue that comes to New Day from your sales and rentals (or "bookings") goes directly to you. Yes, all of it--not a percentage, as with most distributors. However, to make a financial comparison with the traditional distributor, you should figure in your out-of-pocket expenses, summarized by the following:

1. personal promotional expenses (see above), such as your direct mailings (design and printing of brochure, plus mailing expenses);
   
   
2. videotape duplication and packaging of your title;
   
   
3. New Day annual meeting expenses-- spread evenly among all the members, and currently $400-450/year per member.
   
   
4. Your "share" of the New Day co-op's annual operating expenses.

Which brings us to:

2) The Share Ladder

The cost of New Day Film's distribution and operation is spread among the members. Each member's share is determined by his/her title's income, with higher earning titles paying more than lower earning titles. The share ladder, revised twice a year, is based on your bookings for the previous year (share-ladder bookings include all U.S. educational sales/rentals but does not include foreign sales, sales to individuals or television sales).

One "share" is currently about $75/month. New members will start paying at the next bi-annual share calculation (January 1 or July 1), and continue to pay at least one share per month. The more bookings your film has, the more shares you pay in. The number of shares tops out at 7, however, so even filmmakers with an extremely successful film do not pay more than 7 shares. Filmmakers with an average selling film pay about $150-$200/month. Monthly shares are automatically subtracted from your earnings.

New Day Income: What You Might Expect

The educational film and videotape distribution game is an inexact science. Every case is different, depending on the topic of the film, the identified market, and both the size and quality of the publicity campaign involved in promoting it.

Even so, there is a track record comprised of the many filmmaker/distributors who have distributed through New Day. This report should help you put into perspective what to expect from participation in New Day Films, from a purely financial perspective. (Your mileage may differ.)

1. Gross Royalty. Gross royalty, or "take home" income is simply all the gross receipts from rentals and sales of your title, minus your monthly New Day share.
   
   This take-home income turns out to be above 60% of gross receipts for all but the very lowest-selling New Day titles and 75-90% for the top half of the titles. However, since you will inevitably be spending money to promote your film, a more meaningful and realistic figure to look at is "net income."
   
   
2. Net Income. New Day net income is defined here as gross royalty (above), minus (1) out-of-pocket expenses for mailings, tape duplication, and publicity--in short, all marketing expenses, and (2) expenses for the annual meeting. This total varies greatly from member to member, but based on data from recent years, we can draw some general conclusions:

1. When you figure in out-of-pocket distribution expenses (but still neglecting your time and any office staff), most films realize net income in the 20-60% range (of gross receipts)-- at least comparable, and often quite a bit better than what you could expect from a traditional distributor. On the flip side, however, understand that this net income comes as a result of your time and energy (not included in the above calculations). Also be aware that there is no guarantee of sales, and if you cannot (1) identify your market and (2) put time and money into your distribution efforts, you may actually lose money.
   
   
2. New Day members with the highest net income have achieved this in large part because they put substantial time, effort and money into distribution.
   
   
3. Mailings and other publicity (including TV broadcasts) tend to have a cumulative effect, and you will gain information from each one. You have to be patient and persistent. This means (1) expect to have to do mailings once or twice a year repeatedly to maximize sales, and (2) it may take one, two, or three years to "hit your stride", i.e. find the right target mailings, best marketing strategies, etc. For some New Dayers, the first year is best, but for others, the peak year is year 2 or 3. And, like in Hollywood, some New Day films have "legs", i.e. continue high sales for 3, 4, 5 years or more. For others, the earnings tail off after year 2 or 3.

In summary, distributing with New Day Films can be financially rewarding. But, even in the best of circumstances, with the best of films, it will take time, money and persistence on your part to promote your own film.

Please feel free to contact a New Day member with any questions.


BACK to Join New Day Films